20. Deduction of input tax on exports and interstate sales, and to special economic zone units and developers etc.

(1) Tax paid under this Act by any dealer on purchase of inputs in respect of,-

(a) any goods sold in the course of export out of the territory of India, or

(b) any goods taxable under the Act, sold in the course of interstate trade or commerce

(c) & (d) Omitted by Act 6 of 2005 w.e.f. 19.3.2005.

shall be deducted as provided under Section 10, subject to such conditions as may be prescribed from output tax payable by such dealer.

(2) Tax paid under this Act on purchase of inputs by a registered dealer who is a developer of any special economic zone or an unit located in any special economic zone established under authorisation by the authorities specified by the Central Government in this behalf, shall be refunded or deducted from the output tax payable by such dealer, subject to such conditions and in the manner as may be prescribed.

Explanation 1.- For the purposes of this section, the expression ''special economic zone'' has the meaning assigned to it in clause (iii) to Explanation 2 to the proviso to section 3 of the Central Excise Act, 1944 (Central Act 1 of 1944).

Explanation 2.-  Omited by Act 6 of 2005 w.e.f. 19.3.2005.